''He is the big beneficiary of a Chinese investment partner; someone that has paid to help him to develop his resources. Now, he is in a very obvious legal dispute with his Chinese partners, but I would say to Mr Palmer, please do not bring down the rest of Australia because of your biases,'' he said.

But an unapologetic PUP leader refused to back down later on Tuesday, tweeting that he had ''not intended to refer to Chinese people'' but to CITIC Pacific in particular, the company he is in dispute with. ''They [China] have a national policy to acquire resources and they do it in a ruthless manner,'' he told Fairfax radio.

Australian Industry Group chief executive Innes Willox condemned the ''ill-considered and inappropriate statements'' and added they were ''a new low in the political debate''.

But BHP Billiton boss Andrew Mackenzie said on Wednesday that he was unconcerned by the comments, saying the strength of Australia's relationship with China would ''rank more highly in the minds of the Chinese''.

''I think the people in China can see through that,'' Mr Mackenzie told ABC radio. ''They're comments by an individual and they’re not on behalf of any other Australian supplier.''

But two of Mr Palmer's senators leapt to his defence, with Senator Jacqui Lambie warning Australia risked becoming ''slaves to an aggressive, anti-democratic, totalitarian foreign power''.

''I strongly support the general point that Clive made about communist China's military capacity and threat to Australia. If anybody thinks that we should have a national security and defence policy which ignores the threat of a Chinese Communist invasion - they're delusional and got rocks in your head.''

Chinese-born senator Dio Wang said: ''I have found Clive to be consistently respectful and supportive throughout our relationship.

''There has never been the slightest suggestion on his part of a prejudicial view of members of the Chinese community,'' he said.

Mr Joyce said on Wednesday that Senator Lambie's comments might sound funny after 15 beers in the pub but said they should not be coming from a senator.

''You are a senator of Tasmania,'' the agriculture minister told the Nine Network. ''No longer can you talk like you might at half-past seven at the corner pub.

''These things sound amusing when they're said after 15 beers, but they're very, very dangerous if you want to say them on national television.''

Senator Joyce said that he would visit China in September to meet his Chinese counterparts for APEC trade discussions, where he would negotiate for more Australian products to be exported.

The PUP leader and billionaire businessman is embroiled in a legal battle with Chinese state-owned company CITIC Pacific, which has accused the mining magnate of siphoning off $12 million. Mr Palmer has strenuously denied accusations that his company, Mineralogy, misused CITIC Pacific's cash to finance PUP's federal election campaign.

Opposition Leader Bill Shorten said China was one of Australia's good friends and the comments were irresponsible and ''certainly not in Australia's best interests''.

''China is one of our most important relationships and unwarranted sprays like this are not helpful at all,'' he said.

West Australian Premier Colin Barnett apologised to China for Mr Palmer's comments, labelling them ''offensive, abhorrent and damaging'' to WA and Australia's long-standing relationship with China.

42 comments

Clive Palmer has 'told it like it is', and the LNP believe they've finally found something to lambast him with. China is our trading partner, however not necessarily our friend.

Commenter

adam

Location

yarrawonga

Date and time

August 20, 2014, 7:17AM

Palmer needs more self control....use that frontal lobe that you still have Clive........he needs to keep his own dealings and prejudices out of his party's job of scrutinising legislation in the senate. He like his colleague Jackie and Abbott & Co are not mature enough to be of any good in their roles. Australia needs some leadership and fast.

Commenter

JT

Date and time

August 20, 2014, 8:03AM

That they are "mongrels"? You don't think that takes it too far? Do you think there aren't elements within China who may find it difficult to distinguish Palmer from the LNP, and take his words as official government opinion? I think it's an appalling gaffe from a diplomatic point of view.

Jacqui is right and sensible to point out the risk with China. We don't know their agenda. Governments have a duty of care which involves appropriately managing the risk. 'She'll be right, Mate' can bring us badly undone.

Commenter

adam

Location

yarrawonga

Date and time

August 20, 2014, 7:25AM

You have to be joking right? "Right and sensible to point out the risks with China" - about to invade Australia militarily? If they wanted to destroy Australia, they could do it economically. These two "rednecks" DO NOT speak for the rest of Australia. They are both more dangerous than we know. The opposite of "she'll be right mate" is not doubling our military spend to aim missiles at our largest trading partner. This would have to be the most idiotic brain fart from these two I have heard in a very long time.

Commenter

Peter@Brisneyland

Date and time

August 20, 2014, 7:58AM

Of course they leapt to his defence. They are his puppets. Heard Jacqui Lambie being interviewed on radio yesterday. I'm more concerned about her being a senator than the Chinese.

Commenter

Catherine

Date and time

August 20, 2014, 8:15AM

She also followed saying Australia needs to develop missiles for self defense against the evil communists (China)

Commenter

Duck dogers

Date and time

August 20, 2014, 9:18AM

I don't have a problem with either socialism or capitalism until they become authoritarian crap in the usual forms - fascism and communism. The Chinese are still communists - authoritarian, and Australia is a democracy. Depending on whether or not China changes more in the future, we could have a problem if our democratic rights are assaulted.

Commenter

adam

Location

yarrawonga

Date and time

August 20, 2014, 7:34AM

Let's not forget history.Tiananmen Square - 4 June 1989 - Chinese Government orders a crackdown on 'counter-revolutionary' protesters. Army fires on unarmed civilians. Hundreds shot and killed.Clive Palmer described the Chinese government as "mongrels" who shoot their own people. Unless you agree with the actions of the Chinese Government, or choose to be ignorant of history, Clive Palmer is correct.

20 Aug
Clive Palmer's live television tirade could prove the last straw for worsening Australia-China relations, a Chinese state-owned newspaper has claimed, in an editorial that also calls for the country to impose sanctions against the Palmer United Party leader's businesses, and bar him from entering the country.

20 Aug
Prime Minister Tony Abbott has joined the chorus of government ministers condemning Clive Palmer's vitriolic comments about the Chinese government, slamming the mining magnate's comments as ''over the top, shrill and wrong''.